Starbucks close across US

A sign is posted outside of a Starbucks in Palo

BY PAUL SAKUMATHE ASSOCIATED PRESS

Published: Wednesday, February 27, 2008 at 6:30 a.m.

Last Modified: Wednesday, February 27, 2008 at 6:36 a.m.

SEATTLE - As caffeine junkies looking for their evening fix were locked out of Starbucks during the company's three-hour nationwide training session Tuesday, many didn't have to look farther than some competing cafe down the street for free or discounted cups of joe.
Dunkin' Donuts announced it was slashing the price of its small lattes, cappuccinos and other coffee drinks for 99 cents for most of the day.
Nearly 7,100 company-operated Starbucks stores across the U.S. - all except the licensed shops in supermarkets, airports, malls, hotels and the like - were to close at 5:30 p.m. local time for training.
Part back-to-basics tutorial, part pep rally, the teach-in aimed to reacquaint some 135,000 employees with the art of pulling the perfect shot of espresso and steaming milk so the velvety foam that tops a latte has just the right thickness.
Caffe Vita Coffee Roasting Co., a small chain with four shops in Seattle, planned to give away free espresso drinks during the shut down.
Caffe Vita marketing manager Kate Perry insisted the giveaway wasn't a swipe at the top dog.
"It's just basically us celebrating how skilled our baristas are and the consistent flavor of our coffee," Perry said.
"It's not as simple as pushing a button," said Ann-Marie Kurtz, Starbucks' manager of global coffee and tea education.
Starbucks wouldn't disclose how much revenue it stands to lose during the shutdown, but analysts say the financial impact will be negligible compared to charges the company will take as it closes about 100 poorly performing U.S. stores this year and pays severance to more than 200 corporate support staff it laid off last week.
U.S. stores make up the bulk of Starbucks' revenue, which totaled $9.4 billion in fiscal 2007, when the company earned more than $672 million.
Robert Toomey, an analyst with E.K. Riley Investments, said he didn't expect a surly backlash from customers getting turned away.
"It's a low-traffic time of day," he said. "The risk of ticking off customers is pretty minimal."
It makes sense to tackle the training in one fell swoop, and it shows the company - which has seen its stock slide about 50 percent since late 2006 - is committed to turning itself around, Toomey said.
"They know they've fallen short," Toomey said. "The quality of the product has deteriorated a bit over the last few years, and they know they've got to improve it."

SEATTLE - As caffeine junkies looking for their evening fix were locked out of Starbucks during the company's three-hour nationwide training session Tuesday, many didn't have to look farther than some competing cafe down the street for free or discounted cups of joe.<BR>
Dunkin' Donuts announced it was slashing the price of its small lattes, cappuccinos and other coffee drinks for 99 cents for most of the day.<BR>
Nearly 7,100 company-operated Starbucks stores across the U.S. - all except the licensed shops in supermarkets, airports, malls, hotels and the like - were to close at 5:30 p.m. local time for training.<BR>
Part back-to-basics tutorial, part pep rally, the teach-in aimed to reacquaint some 135,000 employees with the art of pulling the perfect shot of espresso and steaming milk so the velvety foam that tops a latte has just the right thickness.<BR>
Caffe Vita Coffee Roasting Co., a small chain with four shops in Seattle, planned to give away free espresso drinks during the shut down.<BR>
Caffe Vita marketing manager Kate Perry insisted the giveaway wasn't a swipe at the top dog.<BR>
"It's just basically us celebrating how skilled our baristas are and the consistent flavor of our coffee," Perry said.<BR>
"It's not as simple as pushing a button," said Ann-Marie Kurtz, Starbucks' manager of global coffee and tea education.<BR>
Starbucks wouldn't disclose how much revenue it stands to lose during the shutdown, but analysts say the financial impact will be negligible compared to charges the company will take as it closes about 100 poorly performing U.S. stores this year and pays severance to more than 200 corporate support staff it laid off last week.<BR>
U.S. stores make up the bulk of Starbucks' revenue, which totaled $9.4 billion in fiscal 2007, when the company earned more than $672 million.<BR>
Robert Toomey, an analyst with E.K. Riley Investments, said he didn't expect a surly backlash from customers getting turned away.<BR>
"It's a low-traffic time of day," he said. "The risk of ticking off customers is pretty minimal."<BR>
It makes sense to tackle the training in one fell swoop, and it shows the company - which has seen its stock slide about 50 percent since late 2006 - is committed to turning itself around, Toomey said.<BR>
"They know they've fallen short," Toomey said. "The quality of the product has deteriorated a bit over the last few years, and they know they've got to improve it."<BR>